One problem when estimating a Cobb-Douglas production function with micro data is how to deal with the observations that show positive output but do not use some of the inputs. As the log of zero is not defined one standard procedure is to arbitrarily replace those zero values with "sufficinetly...

During a period of trade liberalization (1985-89), when Mexican manufacturing experienced an important inflow of foreign direct investment, manufacturing sectors with heavy foreign direct investment received greater protection in import-competing sectors. With the move toward greater openness,...